Golden! …and banks are funny.

Things are calm here, the usual back and forth between cities due to my Parisienne.

Seeing as I’m officially a workin’ junior engineer, thought I’d call up the bank and see what plan I’m on now seeing as I’m no longer a student. Now, long story short, I went from the clever packed offer of $10.95/mo for unlimited debits to $4.00/mo for 15. Not earth shattering news, but listening to how withdrawing money from another bank’s ATM is still charged sent me into a confusing cycle in my head…

If you withdraw $20 from a competitor’s bank machine, they add $1.50. Plus, Interac themselves charge $1.50 on that ’cause, well, it’s not your bank. So, it costs you $3.00 to take out $20.00. That’s if it’s a legitimate Canadian bank. If it’s one of those no-name ATM machines, take those numbers and add another $3.00. So, at the bar, taking out $20.00 costs you $1.50 + $1.50 + $3.00 = $6.00. In terms of buying power and percentages, [$20/($20 + $6)] x $20 = $15.38.

…but wait, there’s more: consider the tax on what you’re buying. That brings your $15.38 down to $13.37. Keeping in mind that chances are what you’ve purchased came from, through or was designed in the U.S., factor in a current exchange rate of $0.797 CDN, you get $10.66. Notice I didn’t include ‘tip’ in there if you were planning on eating or drinking with that cash or the initial tax you got charge when you actually made that money initially. Then it would probably drop to about $7. Ouch.

The lesson? Best to not think too much about it. We should probably raise some taxes and bank fees to help starving CEOs that need a 3rd helping of bailouts. Yummy!

Bank Fees and ATM

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